TY - RPRT AU - Goerke, Laszlo AU - Pannenberg, Markus TI - Trade Union Membership and Dismissals PY - 2010/Sep/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 5222 UR - https://www.iza.org/publications/dp5222 AB - In Germany, there is no trade union membership wage premium, while the membership fee amounts to 1% of the gross wage. Therefore, prima facie, there are strong incentives to free-ride on the benefits of trade unionism. We establish empirical evidence for a private gain from trade union membership which has hitherto not been documented: in West Germany, union members are less likely to lose their jobs than non-members. In particular, using data from the German Socio-Economic Panel we can show that roughly 50% of the observed raw differential in individual dismissal rates can be explained by the estimated average partial effect of union membership. KW - dismissal KW - free-riding KW - trade union membership KW - survey data ER -